Union Bank of California's private bank wants to expand beyond lending into investment management.
The San Francisco-based banking company, owned by Bank of Tokyo- Mitsubishi Ltd., administers $7 billion in assets for clients who range from actors to attorneys. Now its private bank is striving to bring more money into its investment management group.
Union Bank's clients "have investments in many locations," said R. Scott Racusin, a managing director. "We're trying to consolidate all that into our private bank."
Union Bank of California was formed from Union Bank and the Bank of California, which was owned by the Japanese banks that combined to form its parent. At both the old U.S. bank units, private banking focused on credit and deposits. And both banks housed their private bankers in their community banking groups.
The private bank plans to open four new offices in affluent cities in California: Newport Beach, Beverly Hills, San Francisco, and Indian Wells. More offices are slated to open in Oregon and Washington in 1997.
Mr. Racusin said that before the merger, neither bank had a full array of investment products. But through a new unit, UBOC Investment Services Inc., the post-merger bank plans to offer various asset classes of investments to its well-heeled borrowers.
Still, some observers say wealthy customers are not likely to shop at one firm for all of their investment needs.
"It's a tough nut. Having a single relationship is unrealistic," said Michael S. Laven, vice president of Canterbury Consulting, a Newport Beach firm that helps wealthy individuals select money managers.
Yet, others say there are affluent people who want a single financial services provider.
"Our data indicate that a quarter of the affluent market would respond to what Scott's offering: the integration of credit, investments and trust," said Michael P. Kostoff, managing director of Advisory Board, a Washington-based private banking consulting firm.